(A) Definitions. For the purpose of this section, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
CONSTRUCTION. Includes, but is not limited to, cement or concrete contracting; masonry contracting; carpenter contracting; excavation contracting; all building trade contracting, which includes, within limitation to, electrical, plumbing, roofing, painting, remodeling, siding, rough framing; all phases of new construction; alterations, additions, repairs, and demolition of structures; street, sidewalk, and pavement contracting; and any items requiring a permit within the licensing jurisdictional limits of the city.
CONTRACTOR. Any person, firm, or corporation who is engaged in the act of construction, supervision of construction, or excavation on any property within the licensing jurisdiction of the city. A licensed CONTRACTOR shall be required on all construction other than that which is owned and occupied by the permittee as his or her primary residence, or is an existing commercial structure under his or her ownership.
(B) License required.
(1) It shall be unlawful to engage in business in the city as a contractor without first having obtained a license, unless the construction is on the permittee’s primary residence or on an existing commercial structure under his or her direct ownership; however, if the improvements to the commercial property constitute a structural improvement, a licensed contractor will be required, regardless of ownership.
(2) No licensed contractor shall allow his or her name to be used by any other person directly or indirectly, either to obtain a building permit or to perform work outside his or her personal supervision. A license is not assignable and shall be valid only for the individual/company in whose name it is issued.
(3) Application shall be made and the fee shall be paid to the City Finance Office prior to work commencing on any project. The City Finance Office shall only issue a license after receiving a completed license application, showing required proof of insurance (see division (G) below), and all fees/penalties (see division (C) below) are paid in full.
(C) Fees.
(1) The initial fee, as well as the annual renewal fee, for said contractor’s license shall be set by resolution of the Common Council. All licenses shall take effect when issued and shall terminate on December 31 in the year for which issued. The license charged shall be paid on the basis of a full year; however, if the license is not renewed prior to the expiration date and the contractor has a job in progress, the penalty shall be $150, plus the cost of the license renewal for the current year.
(2) Any person who has a valid contractor’s license shall not be required to secure an additional license for other building trades with the exception of electricians and plumbers.
(D) Subcontractors. Any person doing business as a subcontractor shall be construed as engaged in the business of construction for which a license is required by this subchapter.
(E) Compliance with regulations. It shall be the duty of all contractors to comply with all ordinances relating to the construction of buildings or other structures, to the construction of streets or sidewalk pavements, and all laws or ordinances pertaining to regulating the activities engaged in.
(F) Revocation of license. Any contractor’s license may be revoked by the Planning and Zoning Commission for repeated violations of any ordinance relating to the construction of buildings, the use of streets, or the replacing of streets, sidewalks, or parkways, or any other ordinance relating to the work performed by such contractor. Such revocation may be in addition to any fine imposed for violating this subchapter. Revocation of a contractor’s license may be appealed to the Common Council at the next regular Council meeting. The contractor shall contact the City Finance Officer to request an appeals hearing before the Common Council.
(G) Insurance; bond.
(1) No permit shall be issued for the construction of a building or structure in the city, or for the repair or alteration of any building, structure, street, or right-of-way, unless a certificate or other proof is filed showing that the contractor is licensed by the city and carries worker’s compensation insurance with limits that comply with the State Worker’s Compensation Law, being SDCL Title 62. The contractor must also carry public liability insurance with single limits of at least $1,000,000 per occurrence and $2,000,000 aggregate. The contractor shall also provide a state excise tax license number.
(2) Before any contractor doing any work for the city on any street or highway, or on any building or premises owned by the city, commences work, he or she shall file with the City Building Official a certificate, or other proof, showing that he or she carries worker’s compensation and public liability insurance as required by ordinance and the terms of his or her contract.
(Prior Code, § 150.22) (Ord. 2022-09, passed 9-6-2022) Penalty, see § 150.999